Frontera says it will evaluate Guyana oil discovery before proceeding

Frontera Energy

11/08/2023 17:42

By Marianna Parraga
       HOUSTON, Aug 11 (Reuters) - Frontera Energy  FEC.TO  and
its unit CGX Energy  OYL.V  expect to complete an analysis in
the next two to three months of the Wei-1 oil well in Guyana
before deciding whether to upgrade an exploration license to its
development phase, Frontera said on Friday.    
    The Frontera-CGX group could become the next oil consortium 
to advance an oil exploration project in Guyana to development
after an Exxon Mobil-led  XOM.N  group did so.
    Wei-1 is one of two wells on the Corentyne block that the
companies had committed to drill in Guyana, where production is
expected to reach 1.2 million barrels per day (bpd) by 2027 by
the Exxon group. 
    "We are analyzing the significant amount of data we got from
the well, which will take a couple of months. That will tell us
the potential of the block," a company executive said in a call
with investors. "Any move we make in relation with the license
will depend on that analysis." 
    Frontera on Thursday said the joint venture was "excited by
the definitive presence of oil in the Maastrichtian and
Campanian, and the presence of hydrocarbons in the Santonian"
areas of its exploration territory. 
    "We believe there is significant potential in the block," it
said, adding that the presence of light oil had been detected.  
 
    Frontera's previous well, Kawa-1, struck light oil and gas
condensate in May last year. 
    Frontera posted net income of $80.2 million in the second
quarter, compared with a loss of $11.3 million or in the prior
quarter and net of $13.5 million in the second quarter of 2022,
the firm said on Thursday.
    Capital expenditures rose to $154.9 million in the reported
period -of which almost $73 million were related to Guyana-,
from $131.5 million in the prior quarter.

 (Reporting by Marianna Parraga; Editing by David Gregorio)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))